Insights | OECD announces tax on multinational companies

Tomado de El País


OECD announces tax on multinational companies

The Organization for Economic Cooperation and Development (OECD), of which Colombia is a member, announced a momentous reform of the international tax system: multinational companies will be subject to paying a 15% tax from 2023.

According to the multilateral organization, it is a historic agreement reached between 135 countries that represent more than 90% of world GDP. According to the OECD, thanks to the new tax, more than 125 billion dollars of profits from the 100 largest and most profitable companies in the world will be reallocated to countries where these multinationals operate and generate profits.

The agreement is made up of two pillars: the first recognizes the right that countries have to tax income that originates in their territory and that cannot be conditioned on the existence of the physical presence of multinationals. The second pillar establishes the minimum payment of a global tax of 15% regardless of where the multinationals carry out their activities.

The pact seeks to end tax competition between countries that have embarked on a race to be more competitive in their corporate income rates to attract economic activities to their territories, seriously impacting the tax collection of other nations. In other words, the agreement democratizes the collection of taxes from companies mainly of a technological nature such as Facebook or Google that, despite having their origin in one country, provide their services all over the planet.

“From now on, a fairer scenario is created since multinationals will pay a single tax regardless of where they operate,” Alejandro Useche, professor of Economics at the Universidad del Rosario, told Portfolio.

As a member country of the OECD, Colombia participated in the structuring of this agreement since last July, when a preliminary agreement was announced between the signatory countries. “The broad consensus on this global tax for multinationals is noteworthy. The world is advancing in a more progressive taxation aligned with today. Colombia will benefit from the recovery of tax resources that we no longer receive due to international agreements ”, said the Minister of Finance, José Manuel Restrepo, after the historic agreement was known.

“Although the implementation of the agreement is still pending, which will be in 2023, it is a huge step to advance in global equity, especially with the nations that are most vulnerable,” added the official.

“Colombia celebrates this achievement and wants to acknowledge and thank the intense work of the OECD and of each and every one of the delegates from the 140 member countries of the inclusive framework. We also reiterate the country’s commitment in the search for a fairer international tax system and global solutions that allow obtaining greater and better results for all our countries, ”said Lisandro Junco, DIAN Director General.